“Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no help at all.” — Dale Carnegie
Over the years you learn a few “tricks” of the trade when negotiating the purchase of a commercial real estate property. Some may refer to these as “schemes” but that has an inference of something not quite kosher, so let us just call this a ‘negotiation strategy.’
Let’s say you have your eye on a great commercial property that would work for your investment goals. You approach the owner and work through negotiations to purchase the property, but to no avail. You are either too far apart in price, terms, etc. and there may even be another offer on the property at the time.
Here is what you do.
No….you do not acquiesce, and do not close the door with a ‘take it or leave it’ attitude. Rather you tell the seller, preferably in writing something to the effect of,
“Thanks for working with me on your property, and sorry we could not get things worked out. In the event you later find things not working as planned I would still have an interest in buying your property. Keep my number of #111-111-1111 in the event things do not work out. Thanks. – Commercial Real Estate Investor.”
This is very simple, takes very little time to do, and most importantly leaves an open door for the seller. If time and circumstances change during the sale of the property, the seller will look to discuss the sale of their property with someone that has shown an appreciation for their property. That someone being YOU. I have gotten into many commercial investment properties that I ordinarily would have missed out on by using this strategy. It is simple, easy to use, and effective.
Make sure you use it too!